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Tesla’s Battery strategy is in preparation for two of its most anticipated vehicles
Tesla has continued to attempt to improve its battery packs and cells despite being the industry leader in EV battery tech. Interestingly enough, the electric car company located in Silicon Valley has had some of the best vehicles in terms of EV range in the past ten years. While other car companies were struggling to equip their attempts at electric cars with 100 miles of usable range, Tesla was and has been pushing the envelope since the original Roadster in 2008.
But even though the company has facilitated several vehicles in its fleet to have over 300 miles of range, and one with over 400 miles, it hasn’t been enough to let Tesla’s battery engineers rest. Even though the Model S Long Range Plus configuration packs 402 miles of electric range, which is plenty for most drivers, Tesla has several cars in the works that pack considerably more range than that. These are also not your “run of the mill” EVs, either. They are the Tri-Motor Cybertruck and the next-gen Roadster.
Batteries are what drive an EV to be all that it can be. They are responsible for the range and the performance of the car, along with the motors and engineering of the chassis and body. However, battery tech is ultimately what decides if a vehicle is going to be a successful electric car or just another one to add to the list of underperforming automobiles.
The key to building a great electric car, like anything else, is starting at the foundation. When you want to make a great pizza, you start with great dough. When you want to make a great EV, you start with the battery cells.
The problem with batteries is that there are no two cells that are the same when the materials that are used within are concerned. Not only that, but sometimes the elements that make some batteries stable and help with energy density are controversial. This is the case with cobalt.
But before I go into a spiel about Tesla’s use of cobalt and how the company responsibly sources it, let’s stay on topic.
Tesla’s battery teams in Canada, led by Jeff Dahn at Dalhousie University, released a new paper this week that indicated an electrolyte solution could contribute to increased battery energy density, and could lead to an extended lifespan.
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The solution would be used to combat the effects of degradation, and would ultimately lead to a longer life span and increased energy density. Enter the Tri-Motor Cybertruck and Roadster.
Both of these cars have range ratings that are well above the Model S Long Range Plus variant. The Cybertruck’s Tri-Motor will have 500+ miles of range, and the Roadster will have 620 miles.
However, Tesla’s current cells are not capable of holding this amount of range. If the batteries are not capable of holding excessive amounts of energy density, they will not perform in the fashion that they were intended. Therefore, Tesla has to continue developing its cells to promote longer-range driving and a long lifespan.
Starting with the Cybertruck, which has an estimated range of “500+ miles,” according to Tesla’s website. Currently, Tesla does not have a battery pack released that is capable of that kind of range, so the batteries must improve. The Tri-Motor setup will certainly help with the towing capacity and acceleration. Still, the battery pack within the Cybertruck has to work efficiently to not only supply power to those motors, but it also has to maintain energy so it can keep range at a reasonable level.
With the Roadster, things are slightly different. This car will (more than likely) not be towing things or have excessive amounts of cargo in the back, so there isn’t as much involved with maintaining range through laborious work. However, it is one of the fastest cars ever made, and Elon Musk has said in the past that the range of the Roadster will be over 1,000 kilometers or 621 miles.
Ultimately, the development of Tesla’s cells has to continue to improve. Obviously, the battery packs for both of the vehicles that were talked about in this article will have battery packs that are larger than the 100 kWh packs that Tesla puts in the Performance variants of the Model S and Model X. But there is a chance that Tesla equips the Cybertruck and Roadster with smaller, more energy-dense batteries like the 2170 cells that are used in the Model 3 and Model Y.
Lucid’s reveal of the 517-mile range that their new EV, the Air, has, certainly must have lit a fire under the rear-ends of Tesla’s battery engineers. Tesla has had a reputation of being the EV company with the best range, and now that Lucid “technically” has the title for that, even though the car isn’t in production, Tesla will likely be gearing up for a takeback of that label.
Tesla’s battery strategy from here on out will be interesting considering other auto companies have proven they are capable of competing in terms of EV range. There is still the fact that Tesla is actually producing these cars on a massive scale and we know that the company’s cars can perform, we don’t know this about the other vehicles yet.
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Tesla Cybercab units finally got a definitive date for when they will be able to be purchased by consumers, ending speculation regarding whether the fully autonomous vehicle would be available in the near term.
During Tesla’s third-quarter 2026 earnings call on October 21, Vice President of Engineering Lars Moravy said the company is aiming to begin delivering its purpose-built Cybercab robotaxi to customers before year-end.
🚨 In short, Cybercabs are slated to go to customers by end of the year. All units are going into Robotaxi fleet currently, per @larsmoravy
Cybercab will be “transport-as-a-service,” but vast majority of Cybercab will be “Tesla-owned,” @elonmusk says https://t.co/R8Qu8QWdmp
— TESLARATI (@Teslarati) October 21, 2026
“We’re trying to get Cybercabs to customers by the end of this year, 2026,” Moravy said. He added that production is underway on the line at Gigafactory Texas, but “all of those are currently going to our own internal Robotaxi fleet.”
Moravy explained that as operations scale, Tesla will “mainly deliver fully designed autonomous vehicles to our customers,” with the Cybercab as the first such vehicle. Initial customer deliveries will start small while the company gains experience with delivery logistics, ownership models, fleet management, and operating autonomous vehicles outside its direct control.
CEO Elon Musk reinforced the limited nature of private sales, describing the Cybercab primarily as a “transport-as-a-service” offering rather than a personal ownership vehicle like the Model 3, Model Y, or upcoming Roadster. “The vast majority of the Cybercab stuff will be Tesla-owned and transport-as-a-service,” Musk said.
The Cybercab is a two-seater vehicle developed by Tesla without a steering wheel or pedals. It relies completely on Tesla’s Full Self-Driving suite and has been in production since February. Early units have been put in Tesla’s Robotaxi service as of early September, when the company launched rides to the public. Tesla previously indicated it would aim to sell Cybercabs for about $30,000.
Unsupervised Full Self-Driving is expected to ship to consumer cars during Q2 2027, Ashok Elluswamy, Tesla’s Head of AI, indicated during the call. Early buyers or fleet operators may receive vehicles whose autonomous operation remains geographically restricted due to lagging regulatory agencies. There are some hurdles that remain ahead of Cybercab deliveries.
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla (NASDAQ: TSLA) reports its earnings for Q3 today. Here’s what to expect, as the company will reveal its balance sheet after the market closes on Wednesday.
Tesla already reported deliveries just after Q3 ended, and it demolished Wall Street consensus estimates of roughly 462,000 vehicles. Tesla delivered 486,532 cars in the third quarter, which was a big beat, but was down 2.1 percent from the same quarter last year. Energy storage deployments were 13.7 GWh, up year-over-year.
Tesla showrooms picked clean ahead of Q3 end as demand looks strong
For the quarter, analysts have already compiled their predictions for what Tesla will report this afternoon:
- Total Revenues: $28.34B
- Non-GAAP EPS: $0.43
- Operating Margin: 2.5%
- Operating Income: $721M
- Free Cash Flow: ~-$4.51B
Here are a few things we are looking forward to hearing about on the call:
Automotive Gross Margin and Overall Profitability
This was 16.3 percent in Q2, down from 19.2 percent in Q1, and was impacted by warranty charges and some fading regulatory credits. Consensus implies overall gross margin near 18 percent, but a miss here would potentially reinforce concerns about pricing pressure on its vehicles.
Pay attention to energy storage margins as well, especially since Tesla missed GWh expectations, although it was still a strong quarter.
Robotaxi/Cybercab, Unsupervised FSD, and Optimus Progress
The Say questions from retail investors usually focus on these types of projects, and this quarter is no different. Scaling the Cybercab fleet beyond Austin amid the open NHTSA safety review, timeline for Unsupervised FSD in customer cars, Robotaxi unit economics, and Optimus cost per unit plus when it could start generating revenue, are all things to be looking for.
Any concrete timelines or regulatory path details will likely move the stock more than the near-term numbers. SpaceX merger speculation, which was detailed during SpaceX’s earnings call last night, may also surface, although the key details were shared last night.
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Say Investor Questions
- How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
- When can we anticipate FSD unsupervised in customer cars?
- When will the CyberCab be available for customer purchase/ownership?
- What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
- Tesla has acknowledged that HW3 vehicles cannot support unsupervised FSD. When will owners know whether they can upgrade their hardware for free, and when will Tesla provide a clear plan?
The full Earnings Call will be streamed this evening after market close around 5 p.m. this evening.
Tesla Cybercab gets a for sale date at last
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
